- Experts differ on the effect of CBN’ decision to escrow the accounts of eleven DisCos
- Revenue collection improved according to ZKJ CEO
- The decision failed to improve services to consumers, Amadi opined
Industry experts have differed on the impact of the decision to escrow accounts of the Distribution Companies (DisCos) by the Central Bank of Nigeria (CBN). The CBN, in August 2020, escrowed the accounts of eleven DisCos restricting withdrawals by the utilities.
Chief Executive Officer (CEO) ZKJ Energy, Rumundaka Wonodi, stated that the escrowing of DisCos accounts saved the sector from total collapse. He, however, maintained that, while escrowing DisCos accounts ensured transparency in the sector, it remained critical for the DisCos to improve operations in the sector.
“So far, it has helped in increasing revenue in the sector. So many people have accused the DisCos of poor remittances, the initiative will make everything open. But it needs to be widened,” Wonodi said.
The former Chairman of the Nigeria Electricity Regulatory Commission (NERC), Dr Sam Amadi, on the other hand, stated that the CBN intervention was supposed to ”..be repaid but through a convenient process that will not adversely affect DisCos’ investment plans,” Amadi said. However, “I don’t think it has significantly improved power supply to homes and businesses,” he added.